CoinShares, a leading digital asset management firm, has officially submitted an application to the United States Securities and Exchange Commission (SEC) for an XRP exchange-traded fund (ETF). This strategic move aims to broaden the range of regulated investment vehicles available for digital assets, providing a cost-efficient method for investors to gain exposure to XRP.
The proposed fund, named the CoinShares XRP ETF, is designed to track the daily performance of XRP using the Compass Crypto Reference Index XRP. The index measures the asset’s value each day at 4 PM Eastern Time, ensuring accurate and transparent benchmarking.
Key Details of the Proposed CoinShares XRP ETF
CoinShares will act as the sponsor of the ETF, with CSC Delaware Trust Company appointed as the trustee. Other essential roles—including administrator, custodian, transfer agent, and marketing agent—have not yet been publicly assigned.
The ETF is anticipated to list on Nasdaq, though its specific ticker symbol remains undisclosed. Shares will be offered exclusively in blocks of 5,000 to authorized participants. An initial seed investment was made by an entity affiliated with CoinShares, which purchased shares later redeemed for cash.
Prospective investors should note that the filing highlights significant risks, including the potential for total loss of capital.
Growing Interest in XRP ETFs
CoinShares is among several major asset management firms seeking regulatory approval for XRP-focused ETFs. Other applicants include Bitwise, WisdomTree, 21Shares, Rex Osprey, ProShares, and Canary Capital.
In addition to single-asset funds, companies like Bitwise and Grayscale have also filed for multi-asset crypto ETFs that include XRP. While the SEC has acknowledged receipt of these broader applications, it has not yet issued responses to filings centered exclusively on XRP.
Regulatory Outlook and Market Optimism
There is growing optimism within the XRP community that at least one XRP ETF could gain approval by the end of 2025. This sentiment is bolstered by shifts in the U.S. regulatory landscape, including the appointment of industry-friendly officials such as the new SEC chairman, Paul Atkins.
Atkins is widely expected to promote clearer regulatory frameworks and support the resolution of ongoing crypto-related litigation, which could facilitate the approval of new digital asset products.
Impact of the Ripple-SEC Case
A critical factor influencing the fate of XRP ETFs is the outcome of the SEC’s ongoing lawsuit against Ripple. The case is currently under appeal in the Second Circuit, with significant briefs scheduled for submission throughout 2025.
A favorable ruling or settlement for Ripple could remove major regulatory uncertainties, paving the way for ETF approvals and accelerating institutional adoption of XRP.
CoinShares’ filing reflects increasing demand for regulated crypto investment options. If approved, an XRP ETF could mark a milestone in the integration of digital assets into mainstream financial markets.
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Frequently Asked Questions
What is an XRP ETF?
An XRP ETF is an exchange-traded fund that tracks the price of XRP, allowing investors to gain exposure to the asset without directly purchasing or storing the cryptocurrency. It offers a familiar and regulated investment structure for both individual and institutional traders.
Why is the Ripple lawsuit important for XRP ETF approval?
The SEC’s case against Ripple has created regulatory uncertainty around XRP’s legal status. A clear resolution—whether through a court decision or settlement—could provide the regulatory clarity needed for the SEC to approve XRP-based financial products like ETFs.
When can we expect an XRP ETF to be approved?
While no specific timeline is guaranteed, many analysts anticipate potential approvals by late 2025. This depends heavily on regulatory developments and the resolution of ongoing legal challenges involving XRP.
How does an ETF benefit XRP investors?
An ETF simplifies investment, improves liquidity, and provides a secure, familiar vehicle for gaining exposure to XRP. It also reduces the technical barriers associated with direct cryptocurrency ownership.
What are the risks of investing in an XRP ETF?
Like all investment products, an XRP ETF carries market risk, regulatory uncertainty, and potential volatility. Investors could experience partial or total loss of capital, especially in the evolving digital asset market.
Can international investors access this ETF?
The proposed CoinShares XRP ETF is designed for U.S. investors via Nasdaq. International availability will depend on local regulations and the fund’s eventual structure.
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This article is for informational purposes only and does not constitute financial or legal advice. Readers should conduct their own research and consult with professional advisors before making investment decisions.